SAP S/4HANA Finance: Key Concepts & Features
| 500 | Standard Customizing setting | AUTOMATIC PAYMENT | Specify the payment request clearing account by company code. | CASH MANAGEMENT | The G/L account … To the bank account | CREDIT RISK | Online limit check | FIORI | Review Bank Accounts | FX | After you capture raw exposure data Before you conclude the hedging contract | HEDGING AREA | Company code | HEDGING RESERVE | Intrinsic Component | INTEREST RATES | In Customizing | MARKET | Bloomberg connector | NON-DELIVERABLE | Rate fixing | RISK ANALYZER | Exposure positions | S/4HANA | Ensuring sufficient funds to meet obligations | S/4HANA NOT | Predicting future cash flows | S/4HANA TRUE | It helps in executing and managing payments. | SUBSCRIPTION | Corporate Action (FWKB) | WRITE-UP | Manual valuation |
| ACTUALS DIMENSION | Only 1 | BALANCE SHEET | Balance sheet | CASH OPERATIONS | Cash concentration | CREDIT RISK ANALYZER | Define determin procedures | FIORI | Physical | GENERATE CORRESPONDENCE | Premature settlement | HEDGING BUSINESS | Component values | HIERARCHY | Liquidity items | INVESTMENT CERTIFICATE | Investment pool certificates | MARKET PRICES | Valuations | NPV | Execute monte-carlo value at risk valuation | RISK ANALYZER | Completely active | S/4HANA CASH | Day-to-day cash activities | S/4HANA NOT | Hedge management | S/4HANA TRUE | It handles different types of financial transactions. | SWAP | Basis spreads | WS78500050 | Manage Workflows |
| AFFILIATED GROU | Emphasis | BANK ACCOUNT | Non-sequential approval pattern | CASHFLOW HEDGE | Creation of the hypothetical derivative. | EFFECTIVENESS | Hypothetical derivative | FIORI | SAP Fiori apps | HEDGE ACCOUNTING | Reclassification date | HEDGING DECISIONS | Hedge Management | HIERARCHY | Business partner | INVESTMENTS | Portfolio Analyzer | MARKET RISK | Valuation rules | PATTERN | A sequential and a non-sequential payment approval pattern can be assigned to a bank account. | RISK ANALYZER | The valuation rule is defined on the basis of the analysis structure. | S/4HANA CASH | Physical | S/4HANA NOT | Managing bank accounts | S/4HANA TRUE | It supports centralized control over bank accounts. | TPM1 | Valuations during hedging relationships | ||
| AIF | Business user | BANK COMMUNICATION | Final payment approval | CASHFLOW HEDGE | Create the hypothetical derivative. | ELECTRONIC BANK | Create account symbols | FIORI | Actuals | HEDGE ACCOUNTING | Deviant date | HEDGING INSTRUMENT | Hedge Accounting Key | HIERARCHY | Analysis characteristic | KEY DATE | Business transactions | MARKET RISK | A hierarchy of portfolios provided by the Portfolio characteristic | PAYMENT | Calculation logic | RISK ANALYZER | Settlement risk | S/4HANA COMPONENT | Payment Run | S/4HANA NOT | Asset management | S/4HANA TRUE | It helps in offsetting potential losses from adverse market movements. | TRADE | Correspondence activity | ||
| ANALYTICS CLOUD | Publish as | BANK COMMUNICATION | Payment medium format | CENTRAL FINANCE | The replication of asset | ELECTRONIC BANK | The value that is derived | FIORI | Cash Flow Analyzer | HEDGE ACCOUNTING | Exposure items | HEDGING INSTRUMENT | Hedge Accounting | HIERARCHY | Analysis characteristic | LIABILITIES POSITIONS | Business partner | MARKET RISK | Analysis parameters tab | PAYMENT APPROVA | Account type and company code | RISK ANALYZER | Valuation rules | S/4HANA COMPONENT | Risk Analysis | S/4HANA NOT | Predicting future cash flows | SAP SUPPORT | Condition groups | TRADING PLATFORM | Hedge plan | ||
| ANALYTICS CLOUD | Data Information-Insight-Action-Value | BANK RECONCILIATION | Bank sub account | CENTRAL FINANCE | The initial load | EXCHANGE RISK | Hedge Management | FLOWS AND SUB | Preprocessing program | HEDGE ACCOUNTING | Exposure subitem | HEDGING INSTRUMENTS | Hedge Management Cockpit | HIGHER | Target quotas | LIQUIDITY ITEM | Data from remote systems | MARKET VALUE | In the case of currency options | PAYMENT PROCESSING | Designating hedges | RISK ANALYZER | The analysis structure characteristic values based on the trade” | S/4HANA FALSE | It is primarily used for long-term financial planning. | S/4HANA PAYMENT | Payment Approval | SECURITIES ACCOUNT | Own issued bonds” | TRANSACTION MANAGER | TRTM_FTR archiving object | ||
| ANALYTICS CLOUD | Spreading Funds | BANK-INTERNAL | Risk Analysis | COCKPIT | Hedging Area | EXPOSURE | Characteristics Values | FOREIGN EXCHANGE | Transaction type | HEDGE MANAGEMENT | Initialize Hedging Relationships report | HEDGING INSTRUMENTS | Designation level | HULL-WHITE | Calibration of the Hull- White interest rate model | LIQUIDITY MANAGEMENT | It is a medium to long term analytical forecast and planning tool to identify use and source of actual cash movements. | MASTER DATA | To trigger workflows using SAP Business Workflow | PLANNING MODEL | Liquidity item | RISK MANAGEMENT | FQM Adapter | S/4HANA FEATURE | Bank account master data | S/4HANA PAYMENT | Payment Methods | SECURITIES CONTRACT | CI Class data | TRANSACTION MANAGER | Financial Transactions | ||
| ANALYTICS CLOUD | Allocating funds | BAPI | Raw exposures | CODE COLUMN | Repetitive Code column | EXPOSURE POSITIONS | In the derivation strategy | FUND AND GRANT | Investment pool participants | HEDGE MANAGEMENT | It is the representation of the hedged item. | HEDGING RELATIONSHIP | Dedesignation | ID | Relevant snapshot ID | LIQUIDITY PLANS | Analysis for Microsoft Office | MASTER DATA | In the detail view | PORTFOLIO | Maintain market data shifts. | RISK MANAGEMENT | Financial Transactions | S/4HANA FEATURE | Hedge Designation | S/4HANA TOOL | Cash flow forecasting | SECURITY POSITIONS | Define and assign differentiations. | TREASURY | Treasury Manager | ||
| ANALYZER OFFERS | Market Risk Analyzer | BTE | Users defined in SAP Bank Acc Man can approve payments | COMPANY CODE | Company-code-dependent data | EXPOSURE TYPE | Corresponding business types | FX | SAP Treasury and Risk Management | HEDGE MANAGEMENT | Managing bank accounts | HEDGING RELATIONSHIP | Financial Transaction | ID | Basis spread value | LONG-TERM | Revenue | MASTER DATA | Participants and Investment pools | POSTING RULES | Interpretation algorithm | RISK MANAGEMENT | It helps in identifying, assessing, and prioritizing risks. | S/4HANA FEATURE | Bank reconciliation | S/4HANA TOOL | Hedge Management | SECURITY TRANSACTIONS | Valuation flows | TREASURY AND RISK | Market Risk Analyzer (TRM-MR) | ||
| ASSIGN EXTERNAL | Interpretation algorithm | BUSINESS PARTNER | Financial transactions | COUNTERPARTY | Partner bank | FI | Serialization in AIF | FX | Analysis items | HEDGE MANAGEMENT | Hedging classification | HEDGING RELATIONSHIP | Update Type Open | IFRS | For cash flow hedges,the effective portion of gain or loss of the HI. | LOW | A new reprocessing code | MEMO | FQM_FLOW | PRICE PARAMETER | Historical volatility | RISK OBJECTS | External data | S/4HANA FEATURE | Financial position management | S/4HANA TOOL | Bank account review and validation | SETTLEMENT | With the processing category which is assigned at the transaction type level | TREASURY MANAGEMENT | Treasury and Risk Management component | ||
| AUTOMATIC PAYMENT | Enter payment parameters | BUSINESS PARTNER | Transaction Manager | COUNTERPARTY ROLE | Derived flows | FINANCIAL ACCOUNTING | Transaction Manager | FX | Released FX hedge requests | HEDGED ITEM | Hedge accounting rule | HEDGING RELATIONSHIPS | Hedging profile | INEFFECTIVE PORTIONS | Classification | LOW AUTOMATIC | SAP Cash Application | MONEY | Interest conditions | RAW EXPOSURES | When you first enter the header data of the raw exposure and then the line items. | RISK TYPE | In the Customizing settings for the exposure lifecycle | S/4HANA FEATURE | Bank account master data | S/4HANA TRANSACTION | Financial Transactions | SIP | Assign bank subaccount to payment methods | TREASURY PAYMENT | Enter payment parameters | ||
| Run payment proposal Payment run — create payment | BUSINESS PARTNER | Bank Directory | COUNTRY | Direction of payment method | FINANCIAL PLANNING | Fund manager | FX | After you capture raw exposure data; Before you create hedging area | HEDGED ITEM | Hedge accounting rule | HEDGING RESERVE | CCBS (NPV_CCBS) components | INITIAL LOAD | Test Phase | MANAGER | Create Deal, settle deal, Posting, payment, Valuation, Reporting | MONEY MARKET | When the currency is different from the company code currency | RECLASSIFIED | Fix and Post Derived Business Transactions | S/4HANA | Define Release Strategy | S/4HANA HEDGE | Hedge Designation | S/4HANA TRANSACTION | Financial Transactions | SPLITTING | Hedged item | TYPE LEVEL | Valuation class | |||
| medium Payment run — accounting entries | CASH FLOW | They are entered manually | COUNTRY LEVEL | Payment medium format | FINANCIAL RISK MANAG | Hedge Management | FX | Balance Sheet FX Risk | HEDGING AREA | Risk Currencies | HEDGING RESERVE | Exposure subitem carries | INSTRUMENT | FX-Forward | MAPPING MDG | value mapping (code mapping) | NOMINAL AMOUNTS | Interest rate swap | RECONCILE CASH | Configure tolerance groups. | S/4HANA | It provides real-time visibility into cash positions. | S/4HANA HEDGE | Hedge Effectiveness Analysis | S/4HANA TRUE | It aids in predicting future cash flows. | SUBITEMS | General valuation | VALUE COMPONENTS | Hedge accounting calculation | |||
| 500 | Standard Customizing setting | AUTOMATIC PAYMENT | Specify the payment request clearing account by company code. | CASH MANAGEMENT | The G/L account … To the bank account | CREDIT RISK | Online limit check | FIORI | Review Bank Accounts | FX | After you capture raw exposure data Before you conclude the hedging contract |
| ACTUALS DIMENSION | Only 1 | BALANCE SHEET | Balance sheet | CASH OPERATIONS | Cash concentration | CREDIT RISK ANALYZER | Define determin procedures | FIORI | Physical | GENERATE CORRESPONDENCE | Premature settlement |
| AFFILIATED GROU | Emphasis | BANK ACCOUNT | Non-sequential approval pattern | CASHFLOW HEDGE | Creation of the hypothetical derivative. | EFFECTIVENESS | Hypothetical derivative | FIORI | SAP Fiori apps | HEDGE ACCOUNTING | Reclassification date |
| AIF | Business user | BANK COMMUNICATION | Final payment approval | CASHFLOW HEDGE | Create the hypothetical derivative. | ELECTRONIC BANK | Create account symbols | FIORI | Actuals | HEDGE ACCOUNTING | Deviant date |
| ANALYTICS CLOUD | Publish as | BANK COMMUNICATION | Payment medium format | CENTRAL FINANCE | The replication of asset | ELECTRONIC BANK | The value that is derived | FIORI | Cash Flow Analyzer | HEDGE ACCOUNTING | Exposure items |
| ANALYTICS CLOUD | Data Information-Insight-Action-Value | BANK RECONCILIATION | Bank sub account | CENTRAL FINANCE | The initial load | EXCHANGE RISK | Hedge Management | FLOWS AND SUB | Preprocessing program | HEDGE ACCOUNTING | Exposure subitem |
| ANALYTICS CLOUD | Spreading Funds | BANK-INTERNAL | Risk Analysis | COCKPIT | Hedging Area | EXPOSURE | Characteristics Values | FOREIGN EXCHANGE | Transaction type | HEDGE MANAGEMENT | Initialize Hedging Relationships report |
| ANALYTICS CLOUD | Allocating funds | BAPI | Raw exposures | CODE COLUMN | Repetitive Code column | EXPOSURE POSITIONS | In the derivation strategy | FUND AND GRANT | Investment pool participants | HEDGE MANAGEMENT | It is the representation of the hedged item. |
| ANALYZER OFFERS | Market Risk Analyzer | BTE | Users defined in SAP Bank Acc Man can approve payments | COMPANY CODE | Company-code-dependent data | EXPOSURE TYPE | Corresponding business types | FX | SAP Treasury and Risk Management | HEDGE MANAGEMENT | Managing bank accounts |
| ASSIGN EXTERNAL | Interpretation algorithm | BUSINESS PARTNER | Financial transactions | COUNTERPARTY | Partner bank | FI | Serialization in AIF | FX | Analysis items | HEDGE MANAGEMENT | Hedging classification |
| AUTOMATIC PAYMENT | Enter payment parameters Run payment proposal Payment run — create payment – medium Payment run — accounting entries | BUSINESS PARTNER | Transaction Manager | COUNTERPARTY ROLE | Derived flows | FINANCIAL ACCOUNTING | Transaction Manager | FX | Released FX hedge requests | HEDGED ITEM | Hedge accounting rule |
| BUSINESS PARTNER | Bank Directory | COUNTRY | Direction of payment method | FINANCIAL PLANNING | Fund manager | FX | After you capture raw exposure data; Before you create hedging area | HEDGED ITEM | Hedge accounting rule | ||
| CASH FLOW | They are entered manually | COUNTRY LEVEL | Payment medium format | FINANCIAL RISK MANAG | Hedge Management | FX | Balance Sheet FX Risk | HEDGING AREA | Risk Currencies |
| SAP BANK | Payment method // Exposure positions | CLOSING | Liabilities (LEQ) // Assets (AST) | MANAGE BANKS | The bank role is assigned. // The business partner category is an organization. |
| FX HEDGE | Hedging scenario // Settings used for the effectiveness tests | COCKPIT | Exposure management 2.0 // One exposure from operations hub | MARKET RISK | Exchange rates // Credit spreads |
| RISK ANALYZER | Decouple the calculation of key figures from reporting. // Combine net present value and value at risk in one report. | CREDIT RISK | Determination procedure // Limit characteristic assignment | MARKET RISK | Manual input // Derivation strategy |
| ACCRUAL | Difference // Reset | CREDIT RISK | It relates to a counterparty not fulfilling their contractual agreements. // It is subdivided into credit risk and settlement risk. | MARKET RISK | Separate the calculation of key figures from reporting // Combine sensitivity per basis point and net present value in one report |
| ACCRUAL/DEFERRAL | Difference // Reset | CREDIT RISK | Define at least one single-transaction-check product. // Activate the integrated default risk limit check. | MULTI-BANK | There is embedded SWIFT network connectivity. // There are minimal additional hardware costs. |
| ANALYTICS CLOUD | Level based // Parent Child | CREDIT RISK | When the trade is saved // When the check icon is clicked | NPV_FWD | 1322 Effective/Cost of Hedging Reserve // 1333 Ineffective/Cost of Hedging Reserve TPL |
| ANALYTICS CLOUD | Default currency // Currency dimension | CROSS-CURRENCY | Nominal amounts are exchanged. // Interest based on the nominal currency amount is exchanged. | ONE EXPOSURE | Decreased data footprint is ensured // Data is better protected against unwanted changes |
| AUTOMATIC PAYMENT | In-house cash payments // Freeform payments | DME | Option to upload & download formats between systems using XML files. // Execution of mass synchronization | ORIGIN X | General Ledger Accounting (FI-GL) // Accounts Receivable (FI-AR) |
| AVERAGE | Income // Expenses | DUAL CONTROL | Account type // Company code | PAYMENT | Allowed origins of payments // Document type for payment and clearing |
| BANK ACCOUNT | Account type // Company code | EXPOSURE MANAGEMENT | Creation of raw exposures // Release of the raw exposures that could be hedged | PAYMENT METHODS | Minimum amount limit // Document type for payment and clearing |
| BANK ACCOUNT | Non-Sequential pattern for different payment amounts // Non-Sequential pattern for different number of payments in the batch | EXPOSURE MANAGEMENT | Distinguish incoming from outgoing exposures. // Determine whether raw exposures shall be released manually or automatically. | RATE INSTRUMENT | Rollover // Settle |
| BANK ACCOUNT | Create bank accounts // Change bank accounts | FIORI | Navigate to other SAP Fiori apps, such as Manage Bank Statements and Cash Flow Analyzer. // Associate house banks, contact persons, and business partners with your banks. | RISK ANALYZER | Online limit check // Monitor risk exposure |
| BANK ACCOUNT | Review initiator // Authorized reviewer | FIORI | Balance sheet exposures // FX hedges | RISK ANALYZER | Limit type // Determination procedure |
| BANK ACCOUNT | Assign different bank accounts with different signatories and payment approval. // Group signatories into different business groups. | HEDGE MANAGEMENT (FX) | Effectiveness test method // Designation types | S/4HANA | Specify the cash scope as full scope. // Activate the business function FIN_FSCM_CLM. |
| BANK ACCOUNT | Closing a bank account // Adding attachments to a bank account | HEDGING AREAS | Period based // Reference based | S/4HANA CASH | The bank relationship management across all bank accounts can be managed in SAP S/4HANA. // The centralized cash position analysis and the liquidity forecast are available in SAP S/4HANA |
| BANK STATEMENTS | Configuration of Bank Statements // Define Monitoring Rules – Intraday Statements app | HOUSE BANK | The house bank name can be freely defined. // Every account at a house bank is represented by an account ID. | S/4HANA FINANCE | Value date // Bank key |
| BLUEPRINT | Automatic correspondence_ // Correspondence object creation | INVESTMENTS | Money market // Securities | SECURITY INSTRUMENTS | Zero update, assign 0 // Update with configured interest rate |
| BUSINESS PARTNER | Counter confirmation required // Automatic correspondence | LIBOR | Lookback interest calculation // Average compound interest calculation | SIP | Assign account symbol to payment method // Make global settings for electronic bank statements |
| CASH FLOW | They allow classification of customers and vendors in cash forecast // They distinguish forecasted cash flows from confirmed cash flows | LIQUIDITY ANALYSIS | Plan to forecast // Plan to actual | SOFR | 040 – Bonds // 550 – Interest Rate Instrument |
| CASH MANAGEMENT | Relevance to cash flow // Planning level | LIQUIDITY ITEM | Flow type // Cash flow direction | SPECIAL ACCOUNTS | There must be a substitution account for every reconciliation account. // Loading balances need an offsetting account. |
| CASH MANAGEMENT | They represent the source of the cash flow. // They distinguish forecasted cash flows from confirmed cash flows. | LIQUIDITY PLANNING | SAP Liquidity Planner // SAP S/4HANA on premise | TRADE | Manual input // Direct interface |
| CASH MANAGEMENT | Contract Accounts Receivable and Payable // Consumer and Mortgage Loans | MANAGE BANKS | BP category is an organization // “Bank Role” is assigned | TREASURY PAYMEN | Free form payment approval // Repetitive code template creation approval |
| SAP BANK | Payment method // Exposure positions | CLOSING | Liabilities (LEQ) // Assets (AST) | MANAGE BANKS | The bank role is assigned. // The business partner category is an organization. |
| FX HEDGE | Hedging scenario // Settings used for the effectiveness tests | COCKPIT | Exposure management 2.0 // One exposure from operations hub | MARKET RISK | Exchange rates // Credit spreads |
| RISK ANALYZER | Decouple the calculation of key figures from reporting. // Combine net present value and value at risk in one report. | CREDIT RISK | Determination procedure // Limit characteristic assignment | MARKET RISK | Manual input // Derivation strategy |
| ACCRUAL | Difference // Reset | CREDIT RISK | It relates to a counterparty not fulfilling their contractual agreements. // It is subdivided into credit risk and settlement risk. | MARKET RISK | Separate the calculation of key figures from reporting // Combine sensitivity per basis point and net present value in one report |
| ACCRUAL/DEFERRAL | Difference // Reset | CREDIT RISK | Define at least one single-transaction-check product. // Activate the integrated default risk limit check. | MULTI-BANK | There is embedded SWIFT network connectivity. // There are minimal additional hardware costs. |
| ANALYTICS CLOUD | Level based // Parent Child | CREDIT RISK | When the trade is saved // When the check icon is clicked | NPV_FWD | 1322 Effective/Cost of Hedging Reserve // 1333 Ineffective/Cost of Hedging Reserve TPL |
| ANALYTICS CLOUD | Default currency // Currency dimension | CROSS-CURRENCY | Nominal amounts are exchanged. // Interest based on the nominal currency amount is exchanged. | ONE EXPOSURE | Decreased data footprint is ensured // Data is better protected against unwanted changes |
| AUTOMATIC PAYMENT | In-house cash payments // Freeform payments | DME | Option to upload & download formats between systems using XML files. // Execution of mass synchronization | ORIGIN X | General Ledger Accounting (FI-GL) // Accounts Receivable (FI-AR) |
| AVERAGE | Income // Expenses | DUAL CONTROL | Account type // Company code | PAYMENT | Allowed origins of payments // Document type for payment and clearing |
| BANK ACCOUNT | Account type // Company code | EXPOSURE MANAGEMENT | Creation of raw exposures // Release of the raw exposures that could be hedged | PAYMENT METHODS | Minimum amount limit // Document type for payment and clearing |
| BANK ACCOUNT | Non-Sequential pattern for different payment amounts // Non-Sequential pattern for different number of payments in the batch | EXPOSURE MANAGEMENT | Distinguish incoming from outgoing exposures. // Determine whether raw exposures shall be released manually or automatically. | RATE INSTRUMENT | Rollover // Settle |
| BANK ACCOUNT | Create bank accounts // Change bank accounts | FIORI | Navigate to other SAP Fiori apps, such as Manage Bank Statements and Cash Flow Analyzer. // Associate house banks, contact persons, and business partners with your banks. | RISK ANALYZER | Online limit check // Monitor risk exposure |
| BANK ACCOUNT | Review initiator // Authorized reviewer | FIORI | Balance sheet exposures // FX hedges | RISK ANALYZER | Limit type // Determination procedure |
| BANK ACCOUNT | Assign different bank accounts with different signatories and payment approval. // Group signatories into different business groups. | HEDGE MANAGEMENT (FX) | Effectiveness test method // Designation types | S/4HANA | Specify the cash scope as full scope. // Activate the business function FIN_FSCM_CLM. |
| BANK ACCOUNT | Closing a bank account // Adding attachments to a bank account | HEDGING AREAS | Period based // Reference based | S/4HANA CASH | The bank relationship management across all bank accounts can be managed in SAP S/4HANA. // The centralized cash position analysis and the liquidity forecast are available in SAP S/4HANA |
| BANK STATEMENTS | Configuration of Bank Statements // Define Monitoring Rules – Intraday Statements app | HOUSE BANK | The house bank name can be freely defined. // Every account at a house bank is represented by an account ID. | S/4HANA FINANCE | Value date // Bank key |
| BLUEPRINT | Automatic correspondence_ // Correspondence object creation | INVESTMENTS | Money market // Securities | SECURITY INSTRUMENTS | Zero update, assign 0 // Update with configured interest rate |
| BUSINESS PARTNER | Counter confirmation required // Automatic correspondence | LIBOR | Lookback interest calculation // Average compound interest calculation | SIP | Assign account symbol to payment method // Make global settings for electronic bank statements |
| CASH FLOW | They allow classification of customers and vendors in cash forecast // They distinguish forecasted cash flows from confirmed cash flows | LIQUIDITY ANALYSIS | Plan to forecast // Plan to actual | SOFR | 040 – Bonds // 550 – Interest Rate Instrument |
| CASH MANAGEMENT | Relevance to cash flow // Planning level | LIQUIDITY ITEM | Flow type // Cash flow direction | SPECIAL ACCOUNTS | There must be a substitution account for every reconciliation account. // Loading balances need an offsetting account. |
| CASH MANAGEMENT | They represent the source of the cash flow. // They distinguish forecasted cash flows from confirmed cash flows. | LIQUIDITY PLANNING | SAP Liquidity Planner // SAP S/4HANA on premise | TRADE | Manual input // Direct interface |
| CASH MANAGEMENT | Contract Accounts Receivable and Payable // Consumer and Mortgage Loans | MANAGE BANKS | BP category is an organization // “Bank Role” is assigned | TREASURY PAYMEN | Free form payment approval // Repetitive code template creation approval |